SEC Chair Proposes 'One Rule Book' Crypto Regulation

By on
Illustration shows representations of cryptocurrency Dogecoin
Representations of cryptocurrency Dogecoin are seen in this illustration taken June 16, 2022.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has reportedly proposed “one rule book” for the regulation of cryptocurrency assets.

“If this industry is going to take any path forward, it will build some better trust in these markets,” Gensler told Financial Times last week. 

He is in conversation with other financial regulators, including the Commodity Futures Trading Commission (CFTC), to make sure there remain no gaps in the oversight of the crypto sector.

"I’m talking about one rule book on the exchange," he said. 

Gensler further said that the rule should protect investors against fraud, front-running, and manipulation, in addition to providing transparency in over-order books.

The rule book, according to Gensler, will apply to all trading whether a security token versus security token, security token versus commodity token, commodity token versus commodity token. 

The SEC chief further revealed that he is working on a “memorandum of understanding” with his counterparts at the CFTC, which would be a formal deal to maintain that trading in digital assets has adequate safeguards and transparency.

The crypto market recently faced a sharp plunge and for over a week, the market cap has not been able to touch the $1trillion mark. The global market cap was trading at $961.84B, as of 5.44 a.m. ET, CoinMarketCap data showed. 

Earlier this month, Gensler said that investors should beware of promised returns from crypto lending platforms and products that seem "too good to be true." He also warned that crypto exchanges often trade against their customers.
Illustration shows representations of cryptocurrency Dogecoin

Photo: Reuters / DADO RUVIC

Join the Discussion